D. Vinod Shivappa vs Nanda Belliappa

The Supreme Court held that under Section 138 of the Negotiable Instruments Act, 1881, service of notice is a prerequisite for establishing a cause of action against the drawer of a cheque. The Court found that the legal notice sent to the appellant was returned unserved, thus no cause of action arose, and the Magistrate's order to issue process was unjustified. Consequently, the appeals were allowed, and the orders of the Karnataka High Court were set aside.